“The GDP numbers should help to reinforce that interest rates are higher than they need to be to maintain inflation sustainably at a 2% rate,” Nathan Janzen, RBC assistant chief economist, said.

Canada must remove barriers to credit access—particularly for smaller firms—and simplify regulations in order to empower businesses and workers, according to a new report by the Canadian Bankers Association.

The CBA, which represents Canada’s chartered banks as well as foreign banks operating in Canada and other financial institutions, released a “blueprint” to unlock the nation’s economic potential, calling for “forward-looking, practical and effective public policies.”

“To seize the opportunity, we must act with urgency and purpose. Canada must take a comprehensive, coordinated approach to addressing these challenges with forward-looking, practical and effective public policies. Governments and the private sector must work together to make certain that the most effective policies are in place to create high-paying jobs for workers and growth that supports all Canadians,” the blueprint says.

Among the recommendations, the association calls for an improved regulatory framework to facilitate lending to small businesses. It also urges the government to revisit the tax system to make it more competitive and streamlined, including a call to reverse the recent increase in capital gains taxes and the new sector-specific taxes on financial institutions.

The CBA also calls on the government to take steps to facilitate the construction of more multi-unit properties, including easing mortgage loan insurance premiums.